Baring PE buys India's 9th-largest IT co Hexaware for Rs 2,690 crore

India's ninth-largest IT company, Hexaware Technologies, on Friday announced that it has been bought over by Baring Private Equity Asia for around $420 million (Rs 2,690 crore) in one of the largest acquisition deals in India's famed tech field.

Baring PE Asia will buyout 41.8% of Hexaware's shares, which includes 27.7% founder's stake and 14.1% stake belonging to General Atlantic, for about Rs 1,687 crore. Baring will then have to make a mandatory tender offer to minority shareholders of Hexaware for up to 26% of the company at R135 a share, which would be worth about $160 million (Rs 1,058 crore).

Hexaware shares ended up 1.6% before the transaction was announced at R120.75. Hexaware develops software and provides business process outsourcing services to overseas clients.

Hexaware's promoter Atul Nishar will continue as non-executive chairman, and PR Chandrasekar, the current CEO continues his role.

"The total potential investment of over $465 million will be the largest investment made by Baring Asia in India, and is one of the largest ever foreign investments in the IT services sector in India, where the country continues to have a strong global competitive advantage," said Jean Salata, chief executive and founding partner of Baring PE Asia.